MALAYSIAN AIRLINE SYSTEM BERHAD COMPETITION COMMISSION

MALAYSIAN AIRLINE SYSTEM BERHAD COMPETITION COMMISSION

The Court held that MyCC lacked standing to pursue judicial review of the CAT decision because a quasi-judicial body cannot challenge the decision of its own appellate tribunal and, separately, aviation competition jurisdiction vested in MAVCOM from 1.3.2016; on the merits the CAT correctly found the Collaboration Agreement was conditional and not implemented, MyCC failed to define the relevant market and did not establish market sharing under s.4(2)(b); even on the assumptions favouring MyCC, the Court found the collaboration would likely qualify for relief under s.5 NEB criteria. High Court decision quashed and CAT decision reinstated.

Citation
W-01(A)-31-01/2019 (Mahkamah Rayuan)
Parties
Appellant: Malaysian Airline System Berhad; Appellant: AirAsia Berhad; Respondent: Competition Commission; Appellate Tribunal: Competition Appeal Tribunal
Court
A
Jurisdiction
Malaysia
Judgment Date
27 April 2021
Case Number
W-01(A)-31-01/2019 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal (court of Appeal) From Judicial Review Proceedings / Final Judgment on Appeal; Decision Rendered
Outcome
Appeals allowed; High Court judgment of 20.12.2018 set aside; Competition Appeal Tribunal decision of 18.2.2016 reinstated (MyCC decision of 31.3.2014 set aside).
Legal Topics
Market Sharing, Anti Competitive Agreements, Deeming Provision S.4(2), Net Economic Benefit Exemptions S.5, Locus Standi, Jurisdictional Transfer to MAVCOM, Definition of Market (o&d)
Source Language
Malay/English
Competition Law Administrative Law Aviation Law Judicial Review Market Sharing Anti Competitive Agreements Deeming Provision S.4(2) Net Economic Benefit Exemptions S.5 +3 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 6 Authorities cited 20 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Malaysian Airline System Berhad

Appellant

AirAsia Berhad

Appellant

Competition Commission

Respondent

Competition Appeal Tribunal

Appellate Tribunal

Procedural Posture

Civil Appeal (court of Appeal) From Judicial Review Proceedings / Final Judgment on Appeal; Decision Rendered

Legal Issues

  1. 1 Whether MyCC retained locus to pursue judicial review after MAVCOM Act and amendment removing aviation matters from MyCC jurisdiction
  2. 2 Whether MyCC as a quasi-judicial body has standing to apply for judicial review of the decision of its own appellate body (CAT)
  3. 3 Whether the Collaboration Agreement had an object of market sharing such that s.4(2)(b) deeming provision applied

Ratio Decidendi

The Court held that MyCC lacked standing to pursue judicial review of the CAT decision because a quasi-judicial body cannot challenge the decision of its own appellate tribunal and, separately, aviation competition jurisdiction vested in MAVCOM from 1.3.2016; on the merits the CAT correctly found the Collaboration Agreement was conditional and not implemented, MyCC failed to define the relevant market and did not establish market sharing under s.4(2)(b); even on the assumptions favouring MyCC, the Court found the collaboration would likely qualify for relief under s.5 NEB criteria. High Court decision quashed and CAT decision reinstated.

Court Disposition

Appeals allowed; High Court judgment of 20.12.2018 set aside; Competition Appeal Tribunal decision of 18.2.2016 reinstated (MyCC decision of 31.3.2014 set aside).

Orders

  • Court awards costs of MYR 30,000.00 to each Appellant (Malaysian Airline System Berhad and AirAsia Berhad) to be paid by the Respondent, subject to allocator